Mr. Pham Nhat Vuong affirmed that VinFast is the mission and future of Vingroup so “will never let go”.
This morning, Vingroup Corporation (VIC) held its 2024 annual meeting, a rare opportunity for shareholders to directly meet the richest billionaire in Vietnam.
The chairman of the meeting, who also directly answered questions from shareholders, was Vingroup Chairman Pham Nhat Vuong. He still maintains his familiar style, speaking decisively and not avoiding any questions, answering immediately after being asked.
This year, VinFast continues to be the focus. Shares of the electric vehicle manufacturer on the US stock market fell. Vingroup’s plans to divest capital and sell subsidiary shares are also linked by the market to the financial story of this electric vehicle manufacturer.
“Is the corporation’s potential capable of carrying VinFast?”, a shareholder commented.
Mr. Pham Nhat Vuong affirmed that he and Vingroup will put all their efforts into VinFast. “Like 70 years ago when carrying out the historic Dien Bien Phu campaign, we had the slogan “all for the front line, all for victory”, VinFast is the same. We never let go of VinFast, This is not just a business story,” billionaire Pham Nhat Vuong affirmed.
Billionaire Pham Nhat Vuong at Vingroup’s annual meeting on the morning of April 25. Image: VIC
Repeating the statement again, Mr. Vuong added that he will arrange personal funds to sponsor the electric car company with at least 1 billion USD. “We are calling on everyone to join hands in building VinFast, and Vingroup’s subsidiaries must do the same. Units in the system do not deny responsibility, but will participate strongly and in accordance with regulations,” he said. added.
Previously, Vietnam’s richest billionaire and Vingroup have repeatedly announced capital funding plans for VinFast.
At the end of 2023, Mr. Vuong donated 99.8% of the shares of VinES Energy Solutions Company – a company with capital of 6,500 billion VND – to VinFast, in addition to the 1 billion USD he previously donated to the electric car company. Vingroup also sponsored the electric car manufacturer with a non-refundable amount of 500 million USD and loaned 1 billion USD for a maximum period of 5 years.
VinFast reported a net loss of nearly 18,300 billion VND in 2023. By the end of last year, the electric vehicle manufacturer’s total assets reached more than 180,000 billion, an increase of more than 20,000 billion compared to 2022. Equity is 15,210 billion VND, a decrease due to loss recorded during the year. Outstanding bond debt is at more than 19,000 billion VND, an increase of about 5,000 billion VND.
According to parent company Vingroup’s consolidated financial report, in 2023 this manufacturing segment will contribute more than VND 28,000 billion in revenue, more than double the previous year’s level of VND 13,000 billion. However, this segment still suffered a loss of over VND 33,000 billion before tax last year.
Responding to the shareholder’s question about “the market’s doubts about Vingroup’s cash flow”, Mr. Pham Nhat Vuong said without more than a minute of thinking that doubts about the group’s cash flow and capacity are “unfounded.” “.
“We have never missed a penny of loan interest, let alone the principal. The financial plans outlined are strictly followed,” Mr. Vuong told shareholders.
According to the head of Vingroup and VinFast, the current market is difficult, but the most difficult period for the group has passed. Vinhomes product sales in the first months of the year reached a record compared to the previous year. VinFast also became the brand with the largest sales in Vietnam for the first time compared to other brands.
In the field of electric vehicles, Vietnam’s richest billionaire repeated his statement two years ago, that “this is a difficult field, if it were easy, it wouldn’t be Vingroup’s turn to do it.” VinFast, according to him, is a project driven by social responsibility, contributing to the country a classy brand in the world market.
Vingroup shareholders ask questions at the 2024 annual meeting. Photo: VIC
Regarding the plan to build three factories in the US, India and Indonesia, Vingroup Chairman said these projects come with many incentives to support the electric vehicle manufacturer’s expansion process.
“We spent 2 billion USD to build a factory in the US and received more than 2 billion USD in incentives, including tax policies,” said Vingroup Chairman. According to him, the problem is that electric car companies have difficulty competing in the US due to cost issues, such as logistics, taxes, and lack of incentives for buyers, causing low sales. The incentives that electric vehicle manufacturers receive from these projects will support the process of entering the market more smoothly.
This year, Vingroup presented shareholders with a revenue plan of 200,000 billion VND. Profit after tax is 4,500 billion VND. The group said it will promote business activities to strengthen three main pillars, including technology – industry, trade – services and other fields.
In the technology – industry pillar, VinFast expands operations in many new markets around the world such as India, Indonesia, Thailand, Philippines, and the Middle East and Africa region.
In addition to Vietnam, the electric car company promotes the construction of factories in the US, India and Indonesia.
Regarding trade and services, Vinhomes aims to increase sales through launching new projects and consolidating distribution channels. Accordingly, this enterprise will complete the self-trading distribution system in parallel with the existing agent system; Improve online business…
Vinpearl maintains the leading brand identity in entertainment, recreation and resort in Vietnam. Vingroup representative also said that procedures are being carried out to list Vinpearl shares this year.
Minh Son
